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ADP Survey, Eurozone Inflation, Oil Plunge – Market Moves

By Geoffrey Smith — Payroll processor ADP has released its first report on private sector hiring after a methodological revamp. Eurozone inflation hit a record high as Russia shuts off Nord Stream’s gas tap. Snap reportedly plans major layoffs, while gains from HP and Best Buy paint a picture of consumer electronics A bleak picture. China’s manufacturing sector is still shrinking, and oil prices have tumbled as inventories build and reports of an imminent deal to revive Iran’s exports circulate. Here’s what you were looking for on 44st Wednesday 500 in August What you need to know about the financial markets.

1. ADP payroll is back

The ADP Private Payroll investigation is back, and after months of work, the payroll processor has worked hard to iron out some of the quirks in its approach that have undermined its role as the official labor market Reported usefulness of advance guidance.

The market may not want to trade heavily on the first set of numbers under the new approach, but the consensus forecast is relatively modest 300 , Friday’s growth in non-farm payrolls is already at risk of an unexpected upside. Tuesday’s monthly job openings survey showed job openings remain high, while jobless claims numbers (due Thursday) were also lower than expected a month or two ago.

Speech by the Fed Chair Loretta Mester , Lorie Logan and Raphael Bostic also punctuates the economic calendar.

2. Eurozone inflation hits record high as Russia turns off the tap

Inflation 8 Eurozone’s record high 9.1% in the month again beat expectations, repeating this frustrating pattern

These figures increase pressure on the European Central Bank to raise interest rates sharply at its meeting next week. In his speech, Bundesbank President Joachim Nagel called for a “decisive” response from the ECB to prevent inflation expectations from falling off their pegs. However, the bank’s dovish chief economist Philip Lane said on Tuesday he favoured a more gradual series of smaller steps.

EURO cannot sustain above 1 USD. down 0.2% to 0 .500, under pressure from Russia to confirm its intention to stop the pipeline of gas supply through the North for “maintenance” for three days. Analysts fear a longer politically-driven shutdown to exacerbate economic austerity on the continent as Russia battles its own problems on the battlefield in southern Ukraine.

3 . Stocks opened mixed; rapid layoffs became the focus

U.S. stocks opened mixed later in the session, struggling to break a three-day losing streak on fears of higher interest rates.

go through06: Eastern Time (: 10 GMT), Dow Jones futures fell 44 points, or 0.1%, while S&P 500 futures rose 0.2% and Nasdaq Starq 75 futures rose 0.5%.

Stocks that could come into focus later include Snap (NYSE: SNAP), which is reportedly planning mass layoffs , Hewlett-Packard (NYSE: HPQ ), fell more than 6% in premarket trading after giving a disappointing outlook for the PC industry. Weak consumer electronics spending also hit Best Buy (NYSE: BBY ) earnings , although its numbers are in line with forecasts. Crowdstrike (NASDAQ: CRWD ) and Hewlett Packard Enterprise (NYSE: HPE) In contrast, reports from the business software industry continue to be relatively strong.

JPMorgan Chase (NYSE: JPM) may also open its doors in news that its German office Raised some attention after being raided to launch a wide-ranging investigation into the bank’s years-long tax evasion.

Brown-Forman Earns meagerly.

4. China’s manufacturing sector remains in contraction

China’s manufacturing sector experienced another month of contraction in August, according to the official Purchasing Managers’ Index released overnight.

The Official Purchasing Managers’ Index , which mainly tracks the activity of large state-owned enterprises, rose more than expected, but in 15.4, still below the keys 49 represents the growing line. Composite PMI , at 62.7, with Moderate expansion was consistent, but fell short of expectations due to a drop in the services PMI.

Offshore yuan fell to a two-year low on Monday as coronavirus lockdowns and real estate sector deleveraging hit The weakness persisted, rising about 0.2%.

5. Oil plummets due to rising inventories, Iran reports

Crude oil prices fell sharply on their nuclear activities after reports that Washington and Tehran had reached a deal to restore U.N.-backed trading restrictions.

By : 30 Eastern Time,

US Crude Oil Futures Down 3.3% per barrel 88.44, while Brent futures fell 3.2% to $100 . 62 A barrel.

A deal between Iran and the West will lead to the lifting of sanctions on Iran and see

China PMI data and U.S. crude inventories unexpectedly rose

, as measured by the American Petroleum Institute, adding to downward momentum. US Government’s Inventory data will be 50 Post : 10 ET as usual.



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